A lot has been written about how gold can protect you against rising inflation and how this asset behaves when inflation is surging. Probably a lot more was said about how gold is a safe haven asset and can perform better in a risk-off mode. The theory wasn’t put into practice, though, especially concerning inflation, but the past few days, gold has been bullish.
The recent rise in the asset’s price is impressive. Gold finally moved to the upside, driven mainly through fear and risk-off mode rather than inflation.
The price managed to break the crucial horizontal resistance (less crucial in the past weeks, though), at around $1830 (orange), and then broke the upper line of the symmetric triangle pattern (blue), which gives us a proper, long-term buy signal.
It seems that now we’re in a good place for a small take-profit action and a bearish correction as we just met the high from November. It might introduce a minor reversal. The long-term sentiment on gold is finally positive, and most probably, we could see another rally soon.
